Petrol Stays Above ₦1,000 as Dangote, Importers Battle for Market Control

Despite the recent drop in global crude oil prices, many Nigerians are still paying over ₦1,000 per litre for petrol as competition between the Dangote Petroleum Refinery and fuel importers continues to influence pricing in the downstream oil sector.

The decline in international crude prices to about $70 per barrel had sparked expectations that pump prices would fall significantly across the country. However, retail prices have remained largely unchanged, with only slight reductions reported at a few filling stations. Industry stakeholders attribute the slow response to the fact that the Dangote Refinery is still refining crude purchased at higher costs, limiting its ability to make immediate and substantial price cuts.

Officials within the Dangote Group have argued that fuel importers should also reduce their prices, stressing that many importers are sourcing petroleum products at relatively lower costs but have yet to pass those savings on to consumers. According to the officials, it would be unfair to expect the refinery alone to drive down market prices while competing marketers maintain higher selling rates.

The Federal Government has also voiced concern over the slow adjustment in petrol prices despite lower global oil costs. Authorities warned marketers against taking advantage of consumers under the guise of deregulation, insisting that market liberalisation should not become a tool for excessive profiteering. The Federal Competition and Consumer Protection Commission (FCCPC) has equally expressed concern over possible exploitation within the downstream petroleum industry.

Meanwhile, independent marketers have opposed any attempt to introduce price controls, arguing that the deregulated market allows businesses to determine prices based on operational costs, exchange rates and supply conditions. They warned that forcing marketers to sell below cost could threaten the survival of many filling stations.

In a bid to remain competitive, the Dangote Refinery recently announced another ₦50 reduction in its ex-depot petrol price, bringing it down to ₦1,075 per litre. Analysts believe the latest adjustment could trigger further competition in the market and may eventually result in lower pump prices for consumers if importers follow suit.